RAPAPORT... In a colossal effort, the Antwerp World Diamond Centre (AWDC) has once again focused the attention of the world diamond industry and the world press on Antwerp, this time by organizing a “Diamond Divas” exhibition of spectacular diamond jewelry. The exhibition, which runs from April 11 through June 8 in the Province of Antwerp’s Diamond Museum, marks several “firsts.” It is the first time the particular jewels on display have ever been assembled at a single location and the first time some of the pieces have ever been seen by the public.
The exhibition includes jewelry worn by famous actresses, celebrities and royalty on both public and private occasions and during the filming of movies. Among the legends represented are: Marilyn Monroe, Grace Kelly, Madonna, Gloria Swanson, Sophia Loren and Doris Duke.
Philip Claes, spokesman of the AWDC, judged the exhibit a huge success. “The press attendance we had, with more than 100 journalists from all over Europe, and even joining us from Russia, Brazil, Japan, Australia and Turkey, is a good measure of our success and the significance of our accomplishment.”
To put together the exhibition, AWDC solicited pieces from high-end jewelers, auction houses and private collections from around the world. Gathering the jewelry was a considerable achievement on its own. But the quality of the jewelry, in terms of its historic significance, craftsmanship and beauty, is also impressive.
A Political MessageOn one level, Diamond Divas was a very successful publicity event. But on another level, the real impact of the event’s success was in using the world attention to solidify political support with Belgian authorities for the country’s diamond industry. During the past few years, Antwerp diamond industry representatives, under the direction of the AWDC, have launched a number of efforts to build local political support for the industry. Without it, the industry would have to surmount obstacles brought about by political decisions and government regulations.
Among the top Belgian and Flemish politicians in attendance at the Diamond Divas exhibit were Mark Eyskens, former Belgian prime minister, and Kris Peeters, currently the Flemish minister-president and possible future candidate for the position of Belgian prime minister. Peeters stressed that diamonds were part of the Flemish heritage and that the Flemish authorities would be there to support the industry.
If it is true that Antwerp needs the authorities, then Belgium also needs diamonds, given, as Peeters said, that diamond exports were “7.2 percent better in 2007 than in 2006. These successes count toward a good balance of trade for Belgium.” Apart from its contribution to trade, Belgium’s diamond industry employs 30,000 people directly or indirectly. “It’s not only a question of diamond trade,” said Peeters. “The involvement of so many international businessmen is a key asset in the development of many other sectors of activity for our country.”
BaselWorldGlobally, the feedback from Basel was that the traffic, which was less in 2007 than in 2006, continued to decline in 2008. However, said Vimal Lakhani of Kiran Exports, “Fewer visitors, for sure, but those who came were there to do business and, all things considered, business was good for us.”
Having said that, Basel is a place where the presence of diamond exhibitors is apparently going to decline bit by bit. The watch and jewelry industries will remain the main attraction, while the interest for the diamond sector is expected to fade. Being represented is still important, but everybody has downscaled the size of their booths and of their investment in Basel. Moreover, now that the euro has reached a $1.60 exchange rate, only big stones are still worth selling in Switzerland.
Raymond Cohen of Smolensk Diamonds confirmed that “There seems to be no more room for diamantaires in Basel. What’s interesting is that a similar phenomenon could be happening in Hong Kong. Due to the size of the Hong Kong show, some of the exhibitors have been moved to the airport location. Unfortunately, it appears that in order to ease things in the main show location, a whole section will be moved to the airport. And guess who is being moved? The diamond industry. The least we can say is that the nature of the message sent out to our industry is quite ambiguous.”
Mickey Weinstock of The Love Diamond has another perspective on the Hong Kong situation. “The Hong Kong authorities have been attempting for years to develop the airport location, quite unsuccessfully. But people come to Hong Kong for diamonds, and the show organizers figure that if the diamond section gets transferred to the airport, all the traffic will follow because diamonds are the show’s heavyweight.”
The Marketplace• There’s big pressure on polished because its prices reportedly haven’t been increasing enough to offset the margin squeeze.
• The recent increases in the list were not considered sufficient, although they do reflect the pricing trend and pressures on prices.
• Globally, the prices of polished are about 5 to 6 percent lower than they should be.
• Cleanish VS1+ pointers urgently need to be revalued as the discounts for rough have declined quite severely.
Article from the Rapaport Magazine - May 2008. To subscribe click here.